Gold, silver, platinum and palladium: What Singapore investors should know about these precious metals
Outlook for each metal varies depending on market conditions, say analysts
Singapore investors should be mindful of the distinct investment characteristics of precious metals, as they have experienced significant fluctuations in 2026 due to various market factors. While gold, silver, platinum, and palladium are often grouped together as an alternative asset class, each metal presents unique opportunities and risks.
Gold prices have been volatile in the past year, influenced by inflation concerns and the Federal Reserve's rate path. The metal reached a record high of US$5,589.38 an ounce in January before falling sharply and reaching below US$4,000 in July. A recent US jobs report and reduced expectations of a September rate hike have sparked a revival in gold prices, reaching US$4,400 on August 12.
Analysts expect gold and silver prices to rise again, driven by factors such as de-globalisation, de-dollarisation, growing government debt, geopolitical risks, and the risk of a correction in high-tech equities.
Alexandra Symeonidi, a senior analyst, highlights gold's strong upside potential due to sustained central bank buying and increased investor demand. Recent inflows into gold ETFs and a weaker US dollar have further supported the bullish thesis. Silver, though experiencing a reversal, has recovered to around US$65, trading at a cheaper price compared to gold according to the gold-silver ratio.
However, silver is more exposed to the economic cycle, with around 45 per cent of demand coming from industrial uses like solar panels and electronics.
Platinum and palladium, both part of the platinum group metals, have benefited from the rally in gold prices. However, their prices are more influenced by industrial demand and supply constraints. Both metals are used in vehicle emissions-control systems, with platinum prevalent in diesel vehicles and palladium in petrol vehicles. Palladium's outlook is affected by the shift towards electric vehicles, while platinum benefits from its industrial applications, including hydrogen fuel cells.
OCBC Bank's head of wealth advisory expects platinum and palladium to exceed US$2,000 and US$1,500 an ounce by the first half of 2027, respectively. In Singapore, retail investors can gain exposure to precious metals through physical bullion, ETFs, or mining-related stocks. UOB offers physical gold and silver, while OCBC provides digital gold, silver, platinum, and palladium trading through its Precious Metals Account.
The LionGlobal Singapore Physical Gold ETF, listed on the Singapore Exchange, is another option. Physical platinum and palladium can be purchased from bullion dealers, albeit at steep premiums.
Written by urgent.news from The Business Times - Singapore's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
